R2024-40 Resolution Authorizing a Sourcewell Contract for the Purchase of Five (5) Dump Trucks

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Municipal Services DATE: 2/8/2024 MEMO: 2024-33 TO: Honorable Mayor Julie Moore Wolfe and City Council Members FROM: Scot Wrighton, City Manager Matt Newell,Public Works Director Byron Bowman,Municipal Services Manager Chris Bergschneider,Fleet Supervisor SUBJECT: Resolution Authorizing a Sourcewell Contract for the Purchase of Five(5)Dump Trucks SUMMARY RECOMMENDATION: Staff recommends awarding a Sourcewell contract in the amount of$1,013,085.00 to Truck Centers,hic.,to furnish five(5)2025 Freightliner 108SD Plus Chassis and Upfitting. It is proposed that four of the trucks be financed on terms negotiated by the City Treasurer. The fifth truck is for use at the Lake and will be paid directly from the Water Fund. The acquisition of these dump trucks was discussed in the 2024 budget detail presented to council. Once the vehicles are delivered in late 2024,financing will be put out for proposals to local banks as a priority. The proposal would include options for a financing period between 5-7 years,similar to other purchases in the past. BACKGROUND: The Public Works,Municipal Services Division,has requested new Dump Trucks to replace existing Dump Trucks. The units are used for hauling tree debris,72 hour clean up debris,plowing and salting roads. These dump trucks are the year-round work horses of the department. The Public Works,Water Production Division/Lake Services Section has requested the replacement of one of their dump trucks which is used for lake maintenance such as hauling rip rap and debris. The units being replaced are listed in the table below. They have been selected to be replaced due to their age and condition. Unit Year Model Hours Department 277 2006 International 7400 8404 PW/MSD 238 2001 International 4900 8952 PW/MSD 276 2009 International 7400 8238 PW/MSD 257 2009 International 7400 9397 PW/MSD 172 2000 International 4900 7118 PW/Lake Services Units 277,238,276,and 257 for the Municipal Services Division will be financed. Unit 172 for Lake Services will be paid for directly from the Water Fund. The quote includes an"up-fit"quote from Woody's Municipal Supply Company to install the bed and plow accessories. Truck Centers,hic.,will deliver the chassis to Woody's Municipal Supply for up-fitting. The replacement vehicles are estimated to be delivered in 10-18 months. Until recently,the city issued short-term debt instruments to pay for most of its General Fund vehicle and large equipment purchases. Over the last 4 years we have reduced this practice in favor of cash purchases for all vehicles under$100,000 each, ..«,t C .,...«,. ...,....0 1 AA Ann j___ :.. .«....,. ..«.t«...t..,..... .7..L.t u,...,,,.,,,,. ♦t,,. .t..-.,.--+_ _,�__A .. 1.....,...